HANDBOOK - Wellington Institute of Technology

Topic 5:Capital structure and cost of capitalLearning Outcome(s):Understand capital structure and cost of capitalAssessment criteria:5.1 Explore debt and equity taking financial and non financial factors intoconsideration5.2 Calculate and evaluate weighted average cost of capital5.3 Discuss capital asset pricing model (CAPM)5.4 Discuss capital structure decisions including: optimum capital structure, operatingleverage and business risk, and financial leverage and financial risk.Student Resources:Recommended texts and other resources are listed in the course outline.Assessment:Assessment Type Weighting OutcomesOne Test 20% 1, 2TwoGroup FeasibilityStudy40% 1, 2, 3, 4, 5Three Examination 40% 1, 2, 3, 4, 5Reporting Grades:Grade Key 3Successful Completion of Course:Students must achieve a minimum of a C grade.